Correlation Between High Yield and Aquagold International
Can any of the company-specific risk be diversified away by investing in both High Yield and Aquagold International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining High Yield and Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Aquagold International, you can compare the effects of market volatilities on High Yield and Aquagold International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in High Yield with a short position of Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Aquagold International.
Diversification Opportunities for High Yield and Aquagold International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between High and Aquagold is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and High Yield is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on High Yield Municipal Fund are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of High Yield i.e., High Yield and Aquagold International go up and down completely randomly.
Pair Corralation between High Yield and Aquagold International
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.04 times more return on investment than Aquagold International. However, High Yield Municipal Fund is 23.38 times less risky than Aquagold International. It trades about 0.08 of its potential returns per unit of risk. Aquagold International is currently generating about -0.05 per unit of risk. If you would invest 843.00 in High Yield Municipal Fund on November 3, 2024 and sell it today you would earn a total of 43.00 from holding High Yield Municipal Fund or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Aquagold International
Performance |
| Timeline |
| High Yield Municipal |
| Aquagold International |
High Yield and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Aquagold International
The main advantage of trading using opposite High Yield and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Aquagold International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aquagold International will offset losses from the drop in Aquagold International's long position.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |